Segment Information

12 Months Ended

Apr. 30, 2011

Segment Information

Segment Information

NOTE 21: SEGMENT INFORMATION

Management has determined the reportable segments identified below according to types of services offered and the manner in which operational decisions are made. Operating results of our reportable segments are all seasonal.

TAX SERVICES – Our Tax Services segment is primarily engaged in providing tax return preparation and related services and products in the U.S. and its territories, Canada and Australia. Major revenue sources include fees earned for tax preparation services performed at company-owned retail tax offices, royalties from franchise retail tax offices, fees for tax-related services, sales of tax preparation software, online tax preparation fees, fees from refund anticipation checks (RACs), prior year participation in RALs, fees from activities related to H&R Block Prepaid Emerald MasterCard^®, and interest and fees from Emerald Advance lines of credit. HRB Bank also offers traditional banking services including checking and savings accounts, individual retirement accounts and certificates of deposit.

Our international operations contributed $205.8 million, $190.9 million and $160.7 million in revenues for fiscal years 2011, 2010 and 2009, respectively, and $46.2 million, $46.7 million and $31.6 million of pretax income, respectively.

BUSINESS SERVICES – This segment offers tax and consulting services, wealth management, and capital markets services to middle-market companies in offices located throughout the U.S.

CORPORATE – This segment's operations include interest income from U.S. passive investments, interest expense on borrowings, net interest margin and gains or losses relating to mortgage loans held for investment, real estate owned, residual interests in securitizations and other corporate expenses, principally related to finance, legal and other support departments.

IDENTIFIABLE ASSETS – Identifiable assets are those assets, including goodwill and intangible assets, associated with each reportable segment. The remaining assets are classified as Corporate assets, which consist primarily of cash and marketable securities. The carrying value of assets held outside the U.S. totaled $206.3 million, $166.8 million and $126.8 million at April 30, 2011, 2010 and 2009, respectively.

Information concerning the Company's operations by reportable segment is as follows:

							(in 000s)
Year Ended April 30,	2011			2010			2009
REVENUES :
Tax Services	$	2,912,361		$	2,975,252		$	3,132,077
Business Services		829,794			860,349			897,809
Corporate		32,141			38,731			53,691
	$	3,774,296		$	3,874,332		$	4,083,577
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES :
Tax Services	$	767,498		$	867,362		$	927,048
Business Services		49,003			58,714			96,097
Corporate		(139,476	)		(141,941	)		(183,775	)
	$	677,025		$	784,135		$	839,370
DEPRECIATION AND AMORTIZATION :
Tax Services	$	87,666		$	88,523		$	79,415
Business Services		30,692			33,064			36,748
Corporate		3,275			5,314			7,468
	$	121,633		$	126,901		$	123,631
CAPITAL EXPENDITURES :
Tax Services	$	43,043		$	78,108		$	76,305
Business Services		19,873			12,318			21,185
Corporate		43			89			390
	$	62,959		$	90,515		$	97,880
IDENTIFIABLE ASSETS :
Tax Services	$	2,267,236		$	2,279,161		$	2,117,475
Business Services		851,764			806,688			897,250
Corporate		2,088,961			2,148,469			2,344,997
	$	5,207,961		$	5,234,318		$	5,359,722